Explanation Preparation of cash flows from operating activities section of the statement of cash flows for the year ended December 31, 2015. Company HH Statement of Cash Flows (Indirect Method) For the year ended December, 31 2015 Particulars Amount Amount Cash flows from operating activities: Net income $20 Add: Depreciation expense $200 Changes in current assets and current liabilities Refer to Table (2) Add: Decrease in accounts receivable $70 Add: Decrease in prepaid rent expense $8 Add: Increase in salaries and wages payable $9 Less: Increase in inventory ($22) Less: Increase in prepaid insurance expense ($9) Less: Decrease in accou...

5th Edition

ISBN: 9780078025914

Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby

Publisher: McGraw-Hill Education

See similar textbooks

Concept explainers

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

Videos

Question

Chapter 12, Problem 12.2CP

To determine

To prepare: cash flows from operating activities section ofthe statement of cash flows for the year ended December 31, 2015 using the indirect method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 12, Problem 12.1CP

Chapter 12, Problem 12.3CP

Students have asked these similar questions

1.13 assessment help

solve qn no. 3

Horngren's Financial & Managerial Accounting: The Managerial Chapters, 8th Edition. E-M:2-19 Accounting for job costs Brook Trailers’ job cost records yielded the following information: Job No. Date Total Cost of Job at July 31 Started Finished Sold 1 21-Jun 16-Jul 17-Jul $ 3,100 2 29-Jun 21-Jul 26-Jul 13,000 3 3-Jul 11-Aug 13-Aug 6,900 4 7-Jul 29-Jul 1-Aug 4,400 Use the dates in the table to identify the status of each job. Compute the following balances for Brook Trailers: a. Work-in-Process Inventory at July 31 b. Finished Goods Inventory at July 31 c. Cost of Goods Sold for July c. COGS $16,100

Chapter 12 Solutions

Fundamentals of Financial Accounting

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Describe the types of items used to compute cash...Ch. 12 - Under the indirect method, depreciation expense is...Ch. 12 - Prob. 8Q Ch. 12 - Explain why a 50,000 increase in inventory during...Ch. 12 - Prob. 10Q

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

cash flows from operating activities section ofthe statement of cash flows for the year ended December 31, 2015 using the indirect method.

Solution Summary: The author explains how to prepare cash flows from operating activities section of the statement of cash flow for the year ended December 31, 2015 using the indirect method.

Concept explainers

Videos

To prepare: cash flows from operating activities section ofthe statement of cash flows for the year ended December 31, 2015 using the indirect method.

Want to see the full answer?

Chapter 12 Solutions